The report Situation of Catalan Family Retail Businesses, prepared by Comertia, shows that Catalan family businesses are hopeful about the evolution that businesses may have this 2022 and have favorable prospects for opening new establishments and recovering pre-pandemic turnover. However, the sector is cautious about the probable economic consequences of the war in Ukraine which, for now, has already resulted in an increase in inflation and energy and transport costs.
If consumption improves, as 67% of entrepreneurs expect, most retail brands (63%) plan to continue opening new stores this year, compared to 37% who rule it out. In a commercial context affected by the pandemic crisis that forced numerous closures, merchants see the offer of good locations with adjusted rents as an opportunity to open new establishments in city centers and prime areas, as explained by the association's president, David Sánchez, in the presentation of the study.
Regarding job recovery, while last year almost one in two companies reduced staff (46.5%) ---32.6% maintained it and 20.9% increased it---, David Sánchez has acknowledged that "it will be done reasonably when the sales level of the pre-pandemic stage is recovered" and has recalled that the sector "sees the new regulation of temporary contracts (53%) and the disappearance of the contract for work and service (56%) as an inconvenience because they provided great flexibility in an activity like commerce in which demand fluctuates a lot." However, in the report, entrepreneurs highlight positively the new internship contracts (21%) and the prevalence of the sector agreement (18%).
David Sánchez has acknowledged that job recovery "will be done reasonably when the sales level of the pre-pandemic stage is recovered"On the other hand, a good part of businesses assures that they will increase the volume of investments to boost growth in this 2022. Practically all, 81%, state they will opt for digitalization; 65% for product, process, and service innovation, and 35% plan to improve talent attraction and retention.
This comes after digitalization has taken hold in many brands over the past two years. Specifically, last year, 86.1% of respondents stated that their e-commerce turnover increased compared to 2019 data. Catalan brands use their own electronic platforms in 88% of cases, a percentage that was 76% before the pandemic, and Whatsapp is proving to be a highly sought-after incipient channel among users.
Currently, Comertia groups 61 family retail chains, which together comprise 4,000 establishments, employ 35,000 people, and have an aggregated turnover of around 4,000 million euros annually.
This year, the main conditioning factors that could spoil the forecasts of this group are basically the increase in inflation, energy and raw material prices, and the high cost of logistics; and also the amortization and payments associated with debts generated during the COVID crisis.
Companies emphasize that 2022 is reached with a retail sector that has not yet recovered from the pandemic: one out of two companies (51%) closed 2021 with a decrease in sales compared to 2019 and, the balance between openings and closures, leaves the members of the association with practically the same commercial weight, because 73 openings were made, but 66 establishments were closed in 2021.
In this regard, Comertia entrepreneurs ask administrations to work to guarantee stability in energy prices, raw materials, and logistics. The Comertia report states that the main demand of entrepreneurs towards the economic policy of administrations ---whose management they rate with a 4.3 out of 10--- has to do with the expected tax reform.
Comertia entrepreneurs ask administrations to work to guarantee stability in energy prices, raw materials, and logisticsThey also demand an improvement in the competitiveness of the energy sector, the equitable distribution of European funds among family businesses, and an improvement in the functioning of the labor market. Likewise, they want the 3,000 euro limit for cash transactions to be recovered, now set at 1,000 euros.
However, regarding the rental of commercial premises, they asked that the extraordinary limitation on the annual update of the rent of housing lease contracts be equally applicable to commercial premises contracts.
Add The New Barcelona Post as your preferred Google source for free
Stay informed with the latest news.
